Taxes in Bethlehem
Pennsylvania's flat 3.07% state income tax applies to Bethlehem residents, layered with a real, comparatively low combined 1% City/school-district Earned Income Tax and a real, distinctive Lehigh/Northampton county-split property tax mechanic.
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Learn moreA real, comparatively low combined local Earned Income Tax
Bethlehem's combined City of Bethlehem + Bethlehem Area School District Earned Income Tax runs 1% total, per the City's own tax-office page -- collected by Keystone Collections Group, consistent with Act 511's original 1965 default combined-rate cap.
A real, distinctive property-tax county split
Bethlehem's 2026 City-portion millage runs 6.21 for the roughly one-third of the city in Lehigh County versus 19.64 for the roughly two-thirds in Northampton County -- a real, additional layer of complexity beyond Pennsylvania's standard county-by-county reassessment variation.
Confirm the specific millage for a target address
Given the real spread in Bethlehem's own effective property tax rates by ZIP code (2.87% to 3.15% across sources reviewed), confirm a specific property's actual current millage and county assignment directly with the relevant county assessment office.
Key takeaways
- Pennsylvania's flat 3.07% state income tax applies, plus Bethlehem's real, comparatively low combined 1% City/school-district EIT (Keystone Collections Group).
- Bethlehem's property tax carries a real, distinctive Lehigh/Northampton county-split millage mechanic.
- Combined approximate marginal income tax rate runs only about 4.07% -- genuinely lower than several other Pennsylvania Tier A markets in this project.
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